Gavin Newsom Targeted by Billionaire Tax Ads Planned for Five States Ahead of Possible 2028 Bid

California Governor Gavin Newsom is the target of a planned television and digital advertising campaign over his opposition to a billionaire tax. Announced on Friday, the campaign is expected to reach at least five states outside California.

Those include South Carolina, Nevada, New Mexico, Virginia and New Hampshire, according to the organisers' plans. The advertisements challenge Newsom as he considers a possible 2028 presidential run. The dispute centres on Proposition 40, which California voters will decide on 3 November.

The proposal would impose a one-off 5% tax on qualifying billionaires resident in California on 1 January 2026. Real estate, pensions and retirement accounts would generally be excluded from the calculation.

California's official voter guide says 90% of the proceeds would go to healthcare, with the remainder funding education, food assistance and tax administration. Supporters argue the money could help offset federal cuts to Medicaid, which covers low-income Americans.

Billionaire Tax Ads Take Aim at Newsom Outside California

The Yes on Proposition 40 campaign's planned television and digital advertising purchase is worth six figures and could grow, according to its backers. The campaign is aiming at states associated with presidential politics, rather than concentrating this advertising effort where the tax will appear on the ballot.

Voters in the targeted states cannot vote on Proposition 40, but some could participate in a future Democratic presidential primary.

In a 30-second advertisement obtained by the Los Angeles Times, the narrator asks, 'Gavin Newsom turned his back on working Californians. Will he do the same to you?' The advertisement links Newsom's opposition to wealthy donors who have supported his political ambitions.

It names business figures including Chris Larsen, Stewart Resnick, Eric Schmidt and Michael Moritz. That accusation reflects the campaign's political argument, not a proven explanation of Newsom's position.

The advertising effort is principally funded by healthcare union SEIU-UHW West, progressive organiser Saikat Chakrabarti and Ross Boucher, an early Stripe engineer. SEIU-UHW West helped place the wealth tax proposal before voters.

Union president Dave Regan accused Newsom in July of acting like 'a politician with a campaign problem and not a governor with a healthcare problem'.

Gavin Newsom Says Billionaire Tax Should Be National

Newsom opposes Proposition 40 but has called for a national minimum tax on billionaires. In a June statement setting out his position, he described the US tax system as 'fundamentally broken'. His objection is to California introducing this particular levy without similar rules across the country.

The governor argues billionaires could move to lower-tax states, weakening California's finances. He also objects to directing nearly all the proceeds towards healthcare, citing schools, housing, childcare and public safety.

California's nonpartisan legislative analyst estimates the tax could raise tens of billions of dollars over several years. It also projects a possible annual reduction of less than $1 billion (£750.86 million) in state income tax revenue.

The dispute also divides Democrats. The measure is supported by US Senator Bernie Sanders and the California Democratic Party.

Opponents include the California Teachers Association, illustrating divisions among organisations that often support Democratic candidates.

Billionaire Tax Dispute Draws Donors and Unions Into 2028 Debate

Chakrabarti, who leads the progressive think tank New Consensus, has questioned the political calculation behind Newsom's opposition.

He told KQED that the governor was campaigning against the measure because 'he needs those billionaires on his side'. The allegation concerns Newsom's motivation and has not been independently established.

Larsen, who has said he plans to support Newsom in 2028, has donated more than $12 million (£9 million) to efforts opposing Proposition 40, according to KQED. The money was directed towards opposition to the ballot measure, not established here as a contribution to Newsom.

California election records show committees opposing Proposition 40 reported $130.3 million (£97.85 million) in contributions through 22 October, against $33.4 million (£25 million) for supporters.

The political consequences remain contested. Loyola Marymount University professor Fernando Guerra has argued that opposing the tax could appeal to moderate Democrats.

Jim Kessler of the centrist group Third Way similarly suggested that attacks from the party's left could prove politically useful to Newsom.

Californians will decide Proposition 40 in the 3 November election.

Propositions 41 and 42 could still prevent the tax taking effect, the official voter guide says. That would depend on their vote totals and whether a court finds that the measures conflict.

For now, the five-state advertising plan extends the dispute beyond those eligible to vote on California's tax proposal.

Newsom has not announced a presidential campaign, and the advertisements' effects on his standing with potential 2028 voters have not been established. The campaign is nonetheless seeking to make his position on Proposition 40 an issue outside California before the state's ballots are counted.